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Sprint Corporation (S - Analyst Report), which is controlled by Softbank of Japan, announced that it will eliminate 800 customer service jobs, citing fewer customer complaints as the reason. The job cut is the biggest since Japan’s Softbank Corp acquired a controlling stake in the company in Jul 2013.

Improved customer service has resulted in fewer calls for support service, thus, eliminating the need for customer service staff. Sprint also cited that there are fewer employees since the company has shut down its Nextel platform (iDEN business) in Jun 2013, as the company concentrates on core technologies like CDMA, WiMAX and LTE.

Overland Park, KS-based Sprint has already informed most of the employees who are to be dismissed, while the remaining employees will be notified next month. It is believed that about one-third of the affected employees are based in the cities of Fort Worth Irving and Temple. However, the company plans to keep its employee strength at around 40,000.

According to the latest American Customer Satisfaction Index (ASCI), Sprint had a 71 rating out of 100, second only to rival Verizon Wireless. Sprint’s rating is better t than two of its closest rivals, AT&T Inc. (T - Analyst Report) and T-Mobile US Inc. (TMUS - Snapshot Report), who hold a rating of 70 and 68, respectively.    

We believe that though the job cut will not have any significant effect on its financials, this organizational adjustment will allow the company to streamline its operations.

Sprint – the third largest U.S. telecom operator – currently carries a Zacks Rank #3 (Hold). Another stock worth mentioning within this sector is Cincinnati Bell Inc. (CBB - Analyst Report), which currently carries a Zacks Rank #1 (Strong Buy).

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